May 14, 2021

Honda shuts 23-year-old Better Noida automobile unit

NEW DELHI: Honda Vehicles India Ltd (HCIL) has determined to tug the plug on manufacturing at its Better Noida plant in Uttar Pradesh, sources mentioned on Saturday.

The automaker, which is a wholly-owned subsidiary of Japanese Honda Motor Co, had set up the Better Noida plant in 1997.

Trade sources mentioned the plant would, nonetheless, proceed to deal with the corporate’s company head workplace, spare components division and analysis and improvement (R&D) centre amongst different capabilities.

In the meantime, the corporate declined to touch upon the matter.

The automaker would now rely solely on its Tapukara facility in Rajasthan to roll out its total product vary within the nation, sources added.

HCIL had earlier this 12 months initiated a voluntary retirement scheme (VRS) for its manufacturing line associates on the plant to extend productiveness and effectivity.

The corporate used to roll out fashions like Metropolis, CR-V and Civic from the Better Noida plant, which had a manufacturing capability of 1 lakh models each year.

The Tapukara facility, alternatively, has an put in capability of 1.eight lakh models each year.

The plant additionally produces engines that are exported to different international locations.

HCIL had reported gross sales of 9,990 models within the home market in November, up 55 per cent from 6,459 models in November 2019.